Managing construction project risks; case study: contractors in Johor Bahru

Abstract

Risks are unavoidable in almost every construction project whether if it is building projects, civil works, or any other type of construction projects. Risk is inherent in all human endeavours, including construction activities, and the risk factors involved are diverse and varied. Managing construction project risks is considered as compulsory for any project to be successful. Thus, this study aims to identify and classify the types of construction project risks, to evaluate the level of construction project risks and finally, to identify the methods available to reduce or mitigate the construction project risks. The main methodologies used in data collections for this study are literature reviews, open interviews, and questionnaires. While for data analysis, the methods used are likert scaling using mean index formula, risk matrix analysis, reporting, discussion and elaboration. The questionnaire survey was self-administered on construction practitioners in contractor organisations. Survey responses were analysed using the mean index method and matrix analysis. Upon finishing this study, there are several findings gathered. The types of risks found are classified into few categories which are physical risk, construction risks, design risks, political risks, financial risks, legal – contractual risks and environmental risks. The level of risks for each category is then shown using qualitative risk matrix analysis tables. The survey result showed that the major risk factors inherent in construction are financial risk followed by construction risk. Finally, methods available to reduce or mitigate construction project risks are identified in which ten best practices have been recognized